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Cabinet approves PLI Scheme National Programme on High Efficiency Solar PV Modules

Thursday, 08 Apr 2021
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The Cabinet, chaired by Prime Minister Narendra Modi, has approved the Ministry of New & Renewable Energy's proposal for implementation of the Production Linked Incentive (PLI) Scheme 'National Programme on High Efficiency Solar Photovoltaic (PV) Modules' for achieving manufacturing capacity of GW scale in high efficiency solar PV modules with an outlay of Rs 4,500 crore. 
 
Solar capacity addition presently depends largely upon imported solar PV cells and modules as the domestic manufacturing industry has limited operational capacities of solar PV cells and modules. The programme will reduce import dependence in a strategic sector like electricity. It will also support the Atmanirbhar Bharat initiative. 
 
The solar PV manufacturers will be selected through a transparent competitive bidding process. PLI will be disbursed for five years post-commissioning of solar PV manufacturing plants on sales of high efficiency solar PV modules.
 
Manufacturers will be rewarded for higher efficiencies of solar PV modules and also for sourcing their material from the domestic market. The PLI amount will increase with increased module efficiency and increased local value addition. 
 
The benefits expected from the scheme include -- additional 10,000 MW capacity of integrated solar PV manufacturing plants; direct investment of around Rs 17,200 crore in solar PV manufacturing projects; and demand of Rs 17,500 crore over five years for balance of materials.
 
It also includes direct employment of around 30,000 and indirect employment of about 1,20,000 persons; import substitution of around Rs 17,500 crore every year; and impetus to research & development to achieve higher efficiency in solar PV modules.
 
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